Azzet reports on four ASX stocks with price moving updates today.
Seven West Media, Southern Cross Austereo rally on proposed merger
At face value, today’s announced merger between two of Australia’s biggest media companies, Seven West Media (ASX: SWM) and media company Southern Cross Austereo (ASX: SXL), appears to be a marriage made in heaven, with both stocks up around 5% and 2.4% by 1:30 pm AEST (3:30 am GMT).
However, not everyone believes today’s deal is a goer, with Sandon Capital Investments (ASX: SNC) founder Gabriel Radzyminski, the largest shareholder in Southern Cross Austereo (11.3%), clearly unhappy about the deal.
Despite Sandon Capitals' shares also opening around 3% higher today, Radzyminski equated the proposed merger with Seven West Media as akin to “clutching defeat from the jaws of victory”.
While the transaction is expected to be 100%-plus EPS accretive to SCA shareholders, Radzyminski accused the management of Austereo - which he claims possesses the strongest section of traditional media in radio - of pursuing the weaker parts in print and television.
However, the Southern Cross clearly disagrees and firmly believes that this proposal has the potential to create significant value for SCA shareholders.
“We are particularly excited about the potential of the combined company’s digital platforms and capabilities which will generate approximately 12% of FY25 revenues and have compelling future growth opportunities,” said Southern Cross CEO John Kelly.
In addition to requiring regulatory approval, the merger also requires approval from Seven West shareholders, of which Stokes’ Seven Group Holdings owns 40.2%.
Seven Group Holdings has indicated it intends to vote its stake in SWM in favour of the proposed merger.
Assuming it’s successful, the announcement of a merger will see the Seven Network, West Australian Newspapers and the Triple M and Hit radio networks combine as one consolidated company.
Under the proposed deal, Seven West shareholders will receive 0.1552 shares in Southern Cross for every Seven share and own 49.9% of the new group, while Southern Cross shareholders will own 50.1%.
Should the merger proceed, billionaire Kerry Stokes (85) made it clear he would step down as chairman of Seven West Media group in February, when current Southern Cross chairman Heith Mackay-Cruise would take over.
Seven West’s CEO Jeff Howard will run the combined entity, while Southern Cross’s CEO, John Kelly, will be managing director of audio.
Given that traditional media is under pressure from global tech giants and streaming services, investors are clearly attracted to an expected $25 million in cost synergies and the increased scale of the media assets.
Commenting on today’s announcement, Jeff Howard, CEO of Seven West Media told the market that “by bringing together the complementary assets and brands of SWM and SCA, we are creating a truly national, diversified media organisation with extensive scale and reach across our free-to-air television, streaming, audio, digital and publishing assets.”
Seven West Media has a market cap of $235 million; the share price is down 12% in one year and up 9% in the last week.
Southern Cross Media Group has a market cap of $211 million; the share price is up 83% in one year and up 10% in the last month.
Consensus on both stocks in Hold.
New Murchison Gold rallies after reporting strong start to production
Shares in New Murchison Gold (ASX: NMG) were up over 6.9% after the small-cap gold miner reported a strong start to production at its Crown Prince Gold Mine - a key part of the Garden Gully Gold Project in Western Australia's Murchison goldfield.
It’s understood that 31,000 dry tonnes of ore were processed in the first month, which is being trucked to Westgold Resources Limited’s (ASX: WGX, “Westgold”) Bluebird gold processing facility, 36 kilometres by road south of Crown Prince.
The company is set to receive its first revenue in October 2025, and expects a robust start to the December quarter, highlighting the stability and efficiency of its operations.
The production inventory on site has been built up over the month of September with 33,600t (wet tonnes) of Crown Prince ore on the ROM awaiting crushing and 11,000t (wet tonnes) of crushed high-grade product awaiting collection, which is expected to see a strong start to October trucking and ore sales.
Commenting on today’s update, the gold miner’s CEO Alex Passmore told the market that since the commencement of trucking ore to Bluebird, it has ramped up crushing and stockpiling activities and looks forward to first revenue from Crown Prince in October.
“We are continuing to ramp up production from the open pit and are debottlenecking key areas of our process. The December quarter will see the first full quarter of production from the operation, and we are expecting a strong start in October,” he said.
To the uninitiated, New Murchison Gold is a mineral exploration and gold mining company that holds a substantial package of tenements in the prolific Murchison goldfield near Meekatharra, WA.
The company is focused on the Garden Gully Gold Project, which comprises a 677km2 tenure package covering the Abbotts Greenstone Belt and other key regional structures.
The project has multiple gold deposits along the belt, with the most advanced being the Crown Prince Gold Mine.
Given New Murchison Gold’s processing tie-up with large-cap gold producer, Westgold, the company has repeatedly denied market speculation that the latter is eyeballing it for takeover.
Meanwhile, New Murchison Gold is understood to be planning to develop Crown Prince at a cost of just $5.4 million in the second half of this year, with its ore reserve running at 890,000t at 4.8g/t for 140,000oz.
New Murchison Gold has a market cap of $339 million; the share price is up 293% in one year and up 57% in the last month.
The stock appears to be in a strong bullish trend, confirmed by multiple indicators.
Consensus is Strong Buy.
Tamboran Resources Corporation soars on news of NT pilot project
Shares in Tamboran Resources Corporation (ASX: TBN) were up 7% after the natural gas small-cap and its joint venture partner committed to a pilot project in the Beetaloo Basin, Northern Territory (NT).
All going to plan, the company expects to commence gas sales in the middle of 2026.
This final investment decision follows agreements with the NT government and Northern Land Council regarding necessary approvals, and a deal for up to $179.8 million of project financing from a consortium of lenders.
The funding – which is partially underwritten by the NT government - will underpin the construction of a gas compression unit essential for the pilot project.
Commenting in today’s update, Tamboran chairman and interim CEO Dick Stoneburner described the decision to sanction the pilot project as “a major milestone” in the history of the company, the Beetaloo Basin and the NT.
He told the market that securing project financing allows Tamboran and its partner to proceed with a pilot project to accelerate gas production and commence sales by the middle of next year.
“I believe the Beetaloo Basin has the potential to transform not only the Northern Territory, but Australia’s East Coast as a whole,” said Stoneburner.
"This project is expected to deliver energy security to Territorians and provides a pathway to potentially securing long term energy security for Australia’s East Coast gas market, which is anticipated by both the ACCC and AEMO to be in shortfall later this decade.
This endeavour aims to bolster the Northern Territory’s gas supply and stimulate economic growth in the region.
Tamboran expects to complete the current three well drilling program in early 4Q 2025, followed by the stimulation of the Shenandoah South 4H (SS-4H) well, which is planned to be flow tested over 30 days in early 2026.
The remaining three wells are expected to be stimulated in 1H 2026 after the wet season and ahead of the commencement of gas sales in mid-2026.
Tamboran Resources Corporation has a market cap of $264 million; the share price is up 26% in one year and up 15% in the last week.
The stock appears to be in a Medium-term rally, confirmed by multiple indicators.
Consensus is Moderate Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
